Burn

A burn removes coins or tokens from usable supply. This can happen by sending assets to a provably unspendable address, calling a token contract's burn function, or creating an output that no valid spender can redeem.

Burns are used for supply management, fee mechanisms, proof-of-burn systems, or cleanup of unwanted tokens. A burn only changes supply; it does not guarantee demand, liquidity, or price appreciation.

Coins can also become effectively burned when keys are lost, backups are destroyed, or funds are sent to an invalid or unspendable script. These losses reduce spendable supply but are usually impossible to measure precisely.